The objective of this research is to highlight the determinants
of audit fees in the Italian audit market. As described later,
Italy is not directly comparable with other countries where
these kinds of studies have been conducted. Furthermore, the
Big Italian audit firms were condemned by the Italian Antitrust
Authority for price fixing in 2000. A fee model for the Italian
market is developed. Consistent with previous studies,
findings show that the size, the complexity of auditee, and
audit risk have an impact on the audit fee paid by Italian
clients. Moreover, auditor size is also relevant. After
performing further tests, it was found that large auditor
premium could be attributed only to KPMG. So although the
Italian Antitrust Authority condemned all the Big Six, the
results support the idea that these auditors as a group did not
accrue a general premium.

The objective of this research is to highlight the determinants
of audit fees in the Italian audit market. As described later,
Italy is not directly comparable with other countries where
these kinds of studies have been conducted. Furthermore, the
Big Italian audit firms were condemned by the Italian Antitrust
Authority for price fixing in 2000. A fee model for the Italian
market is developed. Consistent with previous studies,
findings show that the size, the complexity of auditee, and
audit risk have an impact on the audit fee paid by Italian
clients. Moreover, auditor size is also relevant. After
performing further tests, it was found that large auditor
premium could be attributed only to KPMG. So although the
Italian Antitrust Authority condemned all the Big Six, the
results support the idea that these auditors as a group did not
accrue a general premium.